The Finnish-Indian BSS software company sheds staff and non-core businesses as it looks to recruit based on customer need
Tecnotree has announced it has completed its restructure which saw it lose 116 staff in Finland, India and the Middle East. First announced in March, the company also rationalised its non-telco resources in North America as it seeks to optimise its investments and R&D.
In North America, Tecnotree terminated its TrustStar product offering to the American mortgage market resulting in savings of €1.5 million in sales, marketing, and infrastructure expenses. The AI-ML resources working on TrustStar have now been refocused to its core telco BSS AI-ML activities globally.
Tecnotree said it is also “actively working” on the in-sourcing of long-term contractors, in low-cost jurisdictions near its customers. While this may result in increased headcount, it will impact opex positively by approximately €200,000 in 2024. The opex impact of these efficiencies will result in cost savings of €4.5 million in the year 2024 and further €7 million in the year 2025.
“As our Digital Stack achieves maturity in the market, we have been able optimize our investments in R&D spend,” said Tecnotree CEO Padma Ravichander (above). “As the company seeks to grow in subscription driven economies of Middle East, Europe and North America, the company will look to add opex in those regions, subject to order wins. For existing markets and customers, the need of the hour is near-shoring for effective agile delivery. This will further align our opex to where our revenues are earned.”
Middle East becoming important for the company
The rationalisation comes at a time when the company has been looking to drive global sales of its digital platform. Last month it reported Q1 revenues of €16.3 million (up 4.7%). The growth was primarily driven by new wins in the LATAM region, while EMEA and APAC regions remain growing markets for the digital platform. Tecnotree secured Nuh-Digital in Brazil, increasing the number of MVNO wins in a new market. Tecnotree Moments platform was selected by Global Hitss to elevate e-health services across Mexico and Latin America, promising streamlined operations across the healthcare value chain.
Tecnotree’s order book grew to €74.8 million, and the growth was supported by LATAM, Middle East, Africa, and APAC. The Middle East is becoming increasingly important for the company where it is expanding its offerings. In February, it secured a new multimillion-dollar deal with Jordan telco Umniah, which has around three million subscribers.
Under this project, Umniah is upgrading its current CRM system with a new CX implementation targeting improvements in NPS, reduction of churn and an increase in ARPU. As part of the agreement, Tecnotree will deploy its Sensa AI-embedded BSS applications, streamlining the AI development lifecycle and driving faster time to value across products.
The applications will include a veritable shopping list of product catalogues, digital self-care and customer management, catalogue-driven order management, demand generation through omnichannel campaigns and configurable integration with leading social networks, lead and funnel management, enterprise workforce management with business process orchestration, business intelligence, and analytics capabilities, enterprise and consumer service request management, partner management, E-Shop (marketplace) & B2B self-care portal.